A Simple Guide to Paying TDS Online: Everything You Need to Know

 
Paying Tax Deducted at Source (TDS) is a mandatory compliance requirement for deductors in India. Thanks to the official Income Tax e-Filing portal, this process can now be completed easily and securely online without needing a consultant.

This guide breaks down the essential steps, required information, and key points for a smooth online TDS payment using the correct challan.

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Key Pre-requisites for TDS Payment

Before you begin, ensure you have the following information ready:

1. TAN (Tax Deduction Account Number): Your mandatory 10-digit TAN is required to identify you as the deductor.
2. Assessment Year (AY): This is the financial year immediately following the financial year in which the tax was deducted (e.g., for TDS deducted in FY 2024-25, the AY is 2025-26).
3. Payment Details: The exact amount of TDS, plus any applicable interest or surcharge.
4. Deductee Category: Whether the deductee (the person whose tax was deducted) is a Company or Non-Company.
5. Nature of Payment: The section of the Income Tax Act under which the TDS was deducted (e.g., salary, interest, professional fees, contractor payments).

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Step-by-Step Guide to Online TDS Payment

The entire process is channeled through the Income Tax e-Filing portal (formerly the NSDL e-Payment site).

Step 1: Access the e-Pay Tax Portal

Ø  Go to the official Income Tax e-Filing website: incometax.gov.in/iec/foportal

Ø  Navigate to the e-Pay Tax option, usually found under the "Quick Links" section.

Step 2: Enter TAN and Verification

Ø  On the e-Pay Tax page, enter your 10-digit TAN and a valid mobile number.

Ø  You will receive a One-Time Password (OTP) on your mobile number. Enter the OTP to verify your TAN details. (Alternatively, registered users can log in using their e-Filing username and password and then select 'e-Pay Tax').

Step 3: Select Challan ITNS-281

Ø  After verification, you will be taken to the payment form.

Ø  Crucially, select Challan No./ITNS 281 (TDS/TCS). This is the only challan used for depositing TDS and TCS amounts.

Ø  Select the correct Assessment Year from the dropdown menu.

Step 4: Fill Deductor and Payment Details

Ø  Select the category of the deductee (Company Deductees or Non-Company Deductees).

Ø  Enter the details of the TDS payment, including:

ü  The total TDS amount deducted.

ü  Any accrued interest or surcharge (if the payment is late).

ü  Other required fields related to the nature of the payment.

Step 5: Select Payment Mode

You have several convenient options for payment:

Ø  Net Banking or Debit Card: Select this option to pay directly through your bank (usually fee-free).

Ø  Payment Gateway: Choose this option to pay using UPI, credit cards, or other supported bank gateways.

Step 6: Complete Transaction and Download Challan

Ø  Review all entered details (TAN, AY, and amounts) carefully before proceeding.

Ø  Click Submit to Bank or Pay Now to be redirected to your chosen bank’s portal.

Ø  Complete the transaction.

Ø  Upon successful payment, the portal will immediately display a confirmation challan (counterfoil).

Ø  Download or print this PDF receipt (Form 281). This receipt contains the mandatory CIN (Challan Identification Number), which is vital for filing your subsequent TDS return.

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Important Compliance Points

Requirement	Details
Due Date	Generally, TDS must be deposited by the 7th of the month following the month in which the deduction was made. (Exception: TDS for the month of March can be paid by April 30th.)
Penalty	Late payment of TDS attracts interest under the Income Tax Act.
Verification	Ensure the TDS amount paid matches the details in your Form 26AS (tax credit statement) to prevent future mismatches and notices.
CIN Importance	The CIN generated on the Challan 281 is the official proof of payment and is mandatory for filing your quarterly TDS statement (Form 24Q or 26Q).